India Regulatory Brief: Approvals for E-boarding at Hyderabad Airport, Payments Banks
E-boarding Facility in Hyderabad Approved for Domestic Flights
The Bureau of Civil Aviation Security, a Ministry of Civil Aviation agency, recently granted Rajiv Gandhi International Airport in Hyderabad, Telangana state permission to implement an e-boarding scheme for domestic air travelers. Under the scheme, domestic air travelers can check-in online prior to departure before using an e-boarding card and an Aadhaar number (a government issued identification number) when entering the airport from the departure area.
Hyderabad International Airport is the first in India to facilitate the e-boarding scheme, which is part of the federal government’s ‘Digital India’ campaign. The local media report that airports in the capital Delhi, Mumbai and Bangalore are currently developing pilot e-boarding schemes. The pilot schemes will likely run for a period of three months once implemented; authorities will likely need another three months to approve each airport’s e-boarding scheme following the trials.
RBI Approves Non-lending Payments Banks
Last week, the Reserve Bank of India (RBI) granted eleven entities preliminary approval to establish non-lending payment banks. The payment banks will allow customers to make transfers and deposits up to 100,000 Rupees (US $1,532), but the banks will not be able to provide loans.
The payment banks represent a new category of banks in India. The payment banks are expected to target consumers that do currently hold bank accounts – such as migrant workers and low-income people in remote, rural areas – by providing bank transfer and deposit services via mobile phones at low transaction costs.
The new payment banks should provide a boost to rural savings and spending in India. At present, many migrant laborers as well as people and small businesses in rural areas conduct their financial transactions in cash. The new payment banks will allow these potential consumers to establish formal accounts for financial transactions and promote new payment schemes for these consumers.
India, Seychelles Sign Tax Information Sharing Pact
Last week, the governments of India and Seychelles forged an agreement to share tax information. The agreement, which is designed to curb tax evasion and avoidance, will allow authorities in the respective countries to share tax information and enforce domestic laws. The agreement establishes procedures for keeping shared tax information confidential and resolving any administrative disputes related to sharing tax information between the countries.
The agreement was forged ahead of Seychelles President James Alix Michel’s August 25-27 visit to India. During the trip, the president is expected to promote greater security and economic cooperation between India and Seychelles.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
Managing Your Accounting and Bookkeeping in India
In this issue of India Briefing Magazine, we spotlight three issues that financial management teams for India should monitor. Firstly, we examine the new Indian Accounting Standards (Ind-AS) system, which is expected to be a boon for foreign companies in India. We then highlight common filing dates for most companies with operations in India, and lastly examine procedures and regulations for remitting profits from India.
Taking Advantage of India’s FDI Reforms
In this edition of India Briefing Magazine, we explore important amendments to India’s foreign investment policy and outline various options for business establishment, including the creation of wholly owned subsidiaries in sectors that permit 100 percent foreign direct investment. We additionally explore several taxes that apply to wholly owned subsidiary companies, and provide an outlook for what investors can expect to see in India this year.
An Introduction to Doing Business in India 2015 (Second Edition)
Doing Business in India 2015 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes. We discuss a range of pertinent issues for foreign businesses, including India’s most recent FDI caps and restrictions, the key taxes applicable to foreign companies, how to conduct a successful audit, and the procedures for obtaining an employment visa.
- Previous Article India’s Bankruptcy Code to Receive Critical Overhaul
- Next Article Social Impact Assessments in India: Red Tape or Good for Business?